Voila! A new style board
In all of these cases, you can benefit from setting up a new-style board, as well. Which brings us to…
Why are these new-style boards emerging?
First, because the world is changing and corporate boards alone are not the sole answer to your business needs.
Second, because around the world legislators keep increasing the legal responsibilities on corporate directors. So fewer really talented directors wish to join corporate boards – given that may place their total assets, income and reputation at personal risk.
Third, because these same highly-talented and experienced people don’t want to work for fees. Or not just fees. Rather, they want to share in the added value they bring, as they bring that new value to you and your business. Setting up different new-style boards facilitates this.
Fourth, custom-built new style boards give you as the Founder or CEO greater flexible, and greater control, over your business – at lower overall cost.
If you have a formal corporate board, you as Founder, Owner, CEO report to that board. And that Board of Directors has the legal power to hire, fire, mentor, direct and monitor you! They are your boss. Even if you own 100% of the company.
You may remember, the Board of Apple fired its co-founder Steven Jobs. And then, later, when he built Pixar Animated Studios, they acquired it, and reinstalled Mr Jobs as Apple’s CEO a year later.
So your alternative is either not to have a Board. Or to keep it tame and nobbled – especially if you live in Australia, the UK, Canada or the USA….
Or you can create a new style board, which: Reports to you. Is hired, fired, and monitored by you. And can mentor you.
A far different equation!
Fifth, in different combinations, these five types of board assist you create a bigger, brighter, better future. And/or help you find the time, resources, funds, minds and bodies to actually build your business securely and sustainably.
These innovative new-style boards are new to the Anglo-Saxon countries of Australia, the UK, Canada, the USA, and New Zealand. But some of them are old hat in some Asian and European countries who are well-used to this two-tier board structure.
Sixth, as you grow these boards can either be adjunct to your corporate board. Or basically replace it!
Seventh, these boards can all start small with your Mentor or Mentors as the first member. And you can grow, change, resize, transform or fold them up over time.
Old and new
As the world as a whole turns on its axis, the business world continues to morph so does its structures and systems.
And, we recommend, you do so, also. The resources, added here each month, will help you.
Resources for you to access
Thinking about setting up an advisory board?
Eight types of Mentors – which ones do you need?
Advisors versus directors: How to build better boards [USA]
Why a SME might have a Board
How to set up a board [New Zealand]
What is governance?
Advisory Board Tool Kit [New Zealand Institute of Directors]
How to set up an advisory board to help you run your small business [USA]
Resources to come
How can I get real value from my SIB?
What do I get my MAB to do?
How do I find the right board members
How boards must ride two tigers
The four core talents for a startup or fast growth company.
Special note on marketing and innovation
The late business guru Peter Drucker famously claimed, “The sole purpose of a business is to create a customer…
“Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
Drucker’s view ignored
However, when Forbes Magazine reviewed top management in 2006, they found their priorities, in order, to be: finance, sales, production, management, legal and people.
Clearly, missing from the list were marketing and innovation.
Forbes suggested in 2006, “When one considers the trouble that many of our icons have run into in recent years, it is not easy to surmise that Drucker’s advice would have perhaps helped management to avoid the problems they face today.”
Many. But not all, new-style boards are precisely about restoring that balance. #